MercoPress. South Atlantic News Agency

China alleges ‘dumping’ and imposes 104% tariff on US chicken imports

Chicken are one of the few items that help to counter trade deficits with China

The Chinese Commerce Ministry said it would impose a 105.4% tariff on U.S. chicken exports after concluding they were unfairly priced. After a yearlong investigation, China concluded US exporters were selling chicken in China at prices that were lower than the costs of production, a practice known as product “dumping.”

The New York Times reported Monday that China began its investigation into US chicken exports two days after President Barack Obama announced tariffs on Chinese tires, but Chinese officials have denied the investigation was retaliatory.

A US trade representative spokeswoman, Carol Guthrie, said, “We are disappointed that duties are to be imposed and will examine the determination for consistency with applicable rules.”

China represents a large portion of the U.S. export market for poultry, buying 678.2 million USD worth in 2009 out of a 4 billion in chicken exports.

Gary Blumenthal, chief executive officer of World Perspectives, an agriculture trade group and consulting firm, said, “Chine is viewed as a potentially huge growing market for poultry.”

It is also one of the rare export items that help balance out a large US trade deficit with China, the Times said.

The Chinese Commerce ministry said that in the first half of 2009 when US chicken imports increased 6.54%, over the previous year, the local industry experienced losses equivalent to 162 million US dollars, which was the same number as for the whole of 2008.

The US is holding mid term elections next November and trade deficits with China as well as allegations of an undervalued Yuan, in a scenario of tepid US recovery and strong unemployment, have become a hot issue.